Sustainability groups have condemned the Government’s “U-Turn” on green commitments following George Osborne’s Budget.

Organisations such as the UK Green Building Council, The Home Builders Federation and the WWF have all united in calling for a re-think of the Government’s newest policies, despite Osborne plunging an extra £2 billion into the Green Investment Bank, on top of the £1 billion already committed.

The green groups have claimed that the Government’s original claims to be the “greenest” in history have been dealt a blow with the U-turn on promises to fit buildings with energy saving measures.

They had suggested that fitting homes with heating insulation and roof cladding would send out a message that Britain was taking active steps in reinforcing its green credentials.

Paul King, Chief Executive of the UK Green Building Council told The Builders Merchants Journal, “The world-leading commitment that new homes would not add to the carbon footprint of our housing stock from 2016 has been scrapped despite a remarkable consensus between industry and NGOs in support of it.”

The government has argued that it needs to offset costs and is unable to do so without loosening the original plans.

A spokesperson for the Communities and Local Government department told Inside Housing, “The new approach is a practical and realistic solution, without piling unfair costs on housebuilders.”

George Osborne told edie.net that the creation of the Green Investment Bank was a “bold step… to support low-carbon investment where the returns are too long-term or too risky for the market.”